Principles of marketing: Lecture 44

Principles of marketing: Lecture 44 provide students with knowledge about: simple marketing system; marketing 4P; actors and forces in a modern marketing system; change in perspective; customer relationship management; product/market expansion grid;... Please refer to this lesson for details!

MGT301

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Lecture­43

Marketing and Society

• The current issues and marketing can be divided into two major subjects:

– Ethics

– Social responsibility

• The two concepts are very closely related

Consumerism

The Right to Be Safe The Right to Be Informed

The Right to Be Heard The Right to Choose

Basic Consumer Rights

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available in the Right Place at the Right Time and making sure that the customer is Aware of the Product

Communication Product/Service Money

Feedback

Marketing

Product Price

Customers

getting the right products to the right people at the right price and at the right place and time with the right promotion 

which individuals and groups obtain what they need and want through creating, offering and exchanging products of value with others

Kotler 1994

Actors and Forces in a Modern Marketing System

Environment

Suppliers

Company (marketer)

Marketing inter- mediaries

End-user market Competitors

Pro duc

ma nds

Exchange, transactions, and relationships

M

ark

ets

Core Marketing Concepts

Core Marketing Concepts

Information Buying

Standardizingand Grading Storing

Marketing Functions

 Yesterday: Here is this great product.  Don’t you want to buy it?

 Today: Here is what I need.  Can you make it?

Management 

CRM – Customer relationship  management . . .

“is the overall process of building and maintaining 

profitable customer relationships by delivering superior customer 

value and satisfaction.”

SOCIETAL MARKETING CONCEPT

PRODUCTION

CONCEPT

PRODUCT CONCEPT

MARKETING CONCEPT

MARKETING CONCEPT

KEY MARKETING PHILOSOPHIES

SELLING CONCEPT

Designing the Business Protfolio

The Boston Consulting Group’s Growth­Share  Matrix

.5x 4x 3x 2x 1x

penetration strategy

Market-(Diversification

strategy)

development strategy

Product- development strategy

Target Consumers

Im

pl em

en ta tio n

M ark etin g

Pla nn ing

M ark eti ng

C on tro l

M ar

ke tin g

An al

ys is

Competitors

Marketing Intermediaries

Publics Suppliers

Political-Legal

Environment

Cultural Environment

Social- Analyzing marketing opportunities

The Marketing Information System

Distributing information

Internal records

Marketing decisions and communication

Marketing environment

Test markets

Marketing channels Competitors Publics

environment forces

Macro-Marketing Information System

Developing information

Marketing intelligence

Marketing research

Marketing decision support analysis

The Marketing Environment

Suppliers

Competitors Publics

The Microenvironment

Serve Customers

Forces Affecting a Company’s Ability to

Serve Customers

The Macroenvironment

to a Company

Forces that Shape Opportunities and Pose Threats

to a Company

Process

1 Problem Definition and the

Consumer Buying Behavior (cont )

Marketing and Other Stimuli

Marketing and Other Stimuli

Buyer’s Black Box

”what” & “how”

Buyer’s Black Box

”what” & “how”

Cultural

Buyer characteristics affecting

consumer behavior

Reference groups Family

Roles and status

Personal

Age and life­cycle Occupation Economic situation Lifestyle Personality

and self­concept

Psycho­

logical

Motivation Perception Learning Beliefs and attitudes

Buyer Decision Process

recognition

Information search

Evaluation of alternatives

Purchase decision

Postpurchase behavior

Market Segmentation

 Segmentation

 Target Marketing

 Market Positioning

Dividing a market into distinct groups with distinct needs, characteristics, or behavior who might require 

separate products or marketing mixes

Segmentation

Target Marketing Strategies

Segment 1 Segment 2 Segment 3

Segment 1 Segment 2 Segment 3

Individual Customer

D.  Custom Marketing Strategy or 

Micromarketing Strategy

Segmentation

• Size, purchasing power, profiles of segments can be measured

• Segments must be effectively reached and served.

• Segments must be large

or profitable enough to serve.

4 Ps

Brand Name

Quality Level

Core Benefit or Service

Core Benefit or Service

Augmented Product

Levels of  Products

Enough for today. . .

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MGT301